B2B Fixed Services in Australia: Market Forecast

Managed and professional services growth to offset legacy voice declines as the market stabilizes at -0.4% 5Y CAGR.

Claudio Castelli · Venture Insights1 October 2021Period: FY21-FY258 min read

Last updated 10 June 2026

$7.0bn→

Total B2B fixed services retail market size in Australia (2025)

35%→

Telstra market share of total fixed services revenue (FY21)

Locked

+2more stats

Companies covered:TelstraOptusTPG TelecomVocusAussie BroadbandMacquarie TelecomBrennan ITIBMDimension DataBTVerizonOrange

Abstract

This report forecasts the Australian B2B fixed services market through 2025, analyzing the transition from legacy voice and MPLS to IP-based solutions and managed services. While the total market is expected to remain relatively flat with a -0.4% 5Y CAGR, significant shifts are occurring between segments. The enterprise sector is projected to grow at 0.4% CAGR, driven by digital transformation, while the SMB segment faces a -1.4% decline. The analysis covers fixed voice, data, internet, and network services across 19 industry verticals.

Key Takeaways

The Australian B2B fixed services market will stabilize at $7.0bn by 2025 following a COVID-induced decline of 1.2% CAGR between FY20-22.
Enterprise segment revenue is projected to grow at 0.4% CAGR, reaching $4.12bn by FY25, outperforming the SMB segment which will decline at -1.4% CAGR.
Legacy fixed voice revenues are collapsing at a -16.6% CAGR as businesses migrate to IP Voice, which is forecast to grow at 10.5% CAGR.

stakeholder implications · PDF download

Frequently Asked Questions

The total market is effectively flat with a -0.4% 5Y CAGR, stabilizing at $7.0bn by 2025. Growth is concentrated exclusively in the enterprise sector, which will reach $4.12bn by FY25, while the SMB segment contracts at -1.4% annually.

Network managed and professional services are the primary growth engine, forecast to reach $2.92bn by FY25. While legacy voice is collapsing at -16.6% CAGR, IP Voice provides a significant offset with projected growth of 10.5% CAGR.

The transition is creating a stagnant data and internet segment with a -0.6% CAGR. A 5.3% annual decline in legacy IP-VPN/MPLS is being countered by 2.6% growth in Ethernet services.

Telstra maintains a dominant 35% share of total B2B fixed services revenue. Its market position is currently more secure in the SMB segment, where it holds 65% of customers, compared to a 56% customer share in the enterprise sector.

B2B Fixed Services in Australia: Market Forecast

Abstract

Key Takeaways

Frequently Asked Questions

Unlock the full report

Free

Lite

Team